Bitcoin's price (BTC) action has been relatively uneventful, especially when compared against the explosive price action of terminal week when the digital nugget stomped through the $9K barrier and rallied all the style $9,530 for a stiff monthly shut.

Bitcoin daily price chart. Source: Coin360

This week all of the attention seems to be oriented towards Tesla, who's stock traded around $250 in belatedly Oct and today topped $940, representing an incredible 310% rally over the past 3 months.

Tesla's $166.63 billion market cap is at present on the verge of surpassing Bitcoin's $167.5 billion market place cap and today crypto traders began to discuss the technical similarities between Bitcoin'due south 2022 rally and Tesla's current parabolic advance.

Tesla (TSLA) weekly chart. Source: TradingView

From a technical perspective, the stock is now overbought every bit the weekly relative strength alphabetize (RSI) currently sits at 94. Traders will recall that during Bitcoin's parabolic rally in 2022 the weekly RSI topped out at 89.v and was followed past a severe reversal after the cryptocurrency reached its superlative at $nineteen,800.

Is FOMO or strong fundamentals driving Tesla's price higher?

Today'due south 19% surge could be the result of Argus Inquiry boosting its toll target for Tesla stock from $556 to $808, or mayhap a long-term valuation update from Ark Investment Management who believe the stock could achieve $7,000 to $15,000 per share past 2024.

FOMO could be another factor influencing the cost every bit investors that continue to see Tesla rise significantly higher with the passing of each a day decide to pile into the stock to catch some quick gains.

Regardless of the reason, the rally has been nothing short of amazing and continues to dominate media headlines.

Bitcoin slows downwardly subsequently 16% rally to $9.6K

Despite the sideways price action, Bitcoin continues to rack upward the minor victories and on Feb. 3, the nugget's estimated U.Due south. dollar transaction value reached $iii.v billion, a high not seen since the metric reached $4.1 billion on July 28, 2022.

Bitcoin Estimated USD Transaction Value. Source: Blockchain.com

The impressive figure occurred as the price reached $9,622 on Monday but since then Bitcoin has pulled back 5.3% to trade at $9,200. Afterward last calendar week'south 16% rally a catamenia of consolidation is warranted.

BTC USDT daily nautical chart. Source: TradingView

Cointelegraph Markets' contributor Michaël van de Poppe recently tweeted the above nautical chart and explained that the current price activeness, "Looks like some natural and healthy consolidation. Even if we reach $eight,550-$8,600, that would be healthy too."

At the time of writing, Bitcoin price has recovered to the $9,200 back up, a point where the toll bounced 5 times over the past week. On the daily timeframe the RSI has pulled back from overbought territory, there is a comport cross on the moving average convergence deviation (MACD) and the MACD histogram has printed a ruby bar as buying slows down and the asset shows a decrease in momentum.

If the $9,200 back up gives way, traders will look for the cost to drop to the 200-mean solar day moving average which is also aligned with the ascending trendline at $8,866 and strong support at $8,775.

BTC USDT daily chart. Source: TradingView

A drib below $viii,775 would place the cost below the ascending trendline and possibly bring the price to the $8,500 support. Below this, $eight,200 would exist the next point of involvement and traders will note the high volume node of the book profile visible range (VPVR) at this level.

The Bollinger Ring indicator moving average is also positioned at $8,939, which is relatively close to the 200-DMA and the ascending channel trendline. Thus, traders' start line of activity may be to look for a bounce in the $8,950 to $8,800 zone, and so play the underlying supports if the toll breaks below the 200-DMA.

BTC USDT 6-hour nautical chart. Source: TradingView

On the shorter timeframe, it'south clear that bulls are fighting to hold the $ix,200 support merely the RSI and MACD are both continuing their downwards path. The toll is riding along the bottom Bollinger Band arm, making lower highs and nosotros can see a high volume VPVR node at $viii,800 and $8,700.

It seems the nearly probable scenario would be to see the RSI continue to drib as bull book dries up and traders wait to exploit an oversold bounciness in the zones listed above.

The views and opinions expressed here are solely those of the author and practice not necessarily reverberate the views of Cointelegraph. Every investment and trading motility involves risk. Y'all should carry your own research when making a decision.